Institute for Distance and Distributed Learning

Market Scan/Analysis, Pre-Assessment, Positioning and Strategic Action

May 20, 2002

Market Scan / Analysis

Market Scan

• California Virtual University– Created 1997– University of California, California State University,

and Community and Independent Colleges– Clearinghouse for Existing Online Courses

• Western Governors’ University– Created June 1996 by Western Governor’s

Association– State Funding, Federal Funding, Gates Foundation,

and IBM– Clearinghouse for Existing American Online Degree

and Non-Degree Programs

Market Scan

• Virtual Temple– Created November 1999– Temple University – Wholly-Owned, For Profit Endeavor– To Make Temple a “Global University”

• ECornell– Created July 2000– Cornell University – Extend the Reach of Degree Programs in

Industrial and Labor Relations

Market Scan

• NYUOnline– Created November 1998– New York University– Wholly-Owned, For Profit Organization– Developing Course for Business and Other

Clients out of the University’s Curriculum

• eMBA– Create November 2000– SUNY Buffalo College of Business– Online Masters Program

Market Scan

• Fathom Consortium– Created March 2000– Columbia University, London School of

Economics, University of Chicago, New York Public Library, et al.

– Offer Corporate Training and other Continuing Education based on Existing Curriculum

– Other Specialized Lifelong Learning Courses

Market Status

• California Virtual University– STATUS: Abandoned April 1999

• Western Governors’ University– STATUS: Reconceived 2001 – Teacher Training

• Virtual Temple– STATUS: Abandoned July 2001

• ECornell– STATUS: Reorganized March 2001 – Medical and

Hospitality• NYUOnline

– STATUS: Abandoned 2001 – Invested over $20M• eMBA

– STATUS: Abandoned March 2002• Fathom Consortium

– STATUS: Reassessing Program – Invested over $25M

Market Analysis

• “Cannot be Everything to Everybody”• Current Market = Big Failures with Big

Investments• Non-Profit Companies Competing in For-Profit

Arenas• All Major Publicly Traded E-Learning

Companies Losing Millions in the B2C Space– Market Saturated– Mass Consolidation– Consumer Demands High Functionality, Low Price

• Insanity = Watching Others Fail and Following in Their Foot Steps

Program Pre-Assessment

SWOT Analysis

• Process and Initial Feedback – Program / Initiative Assessment is a Team-

Based Project Requiring Active Dialogue from All Participants

– Seed of SWOT Analysis gathered through conversations with 6-8 team members

• Situational Analysis– Aggregate and Analyze SWOT Findings

Strengths

• Solid Production Team• VT Brand• E-Commerce Infrastructure• 24/7 Support Infrastructure• Network of World-Class Faculty• Relatively Low Overhead• Cohesive Leadership• To be completed by team…

Weaknesses

• Efficiencies of Scale• Production Model• Fragmented Customer Focus• Fragmented Product Line• Lack Content• Too Much Content Not Marketable• Alumni Association Relationship• To be completed by team…

Opportunities

• Vertical Markets• Value-added Partnering• Regional Businesses• Prospective and Current Students• Grants• Partner on Government Contracts• Enterprise Fund• To be completed by team…

Threats

• Training Centers• Most Universities have Courses Online• Publicly Traded Companies• Consortiums• Internal Initiatives• Online Credit-based Courses• To be completed by team…

Positioning and Strategic Action

E-Learning Business Models

• Selling Direct / Virtual Universities– Individual providers offer e-learning courses

directly to learners with no broker involvement

• Partnerships / Joint Ventures– Two or more partners collaborate to provide e-

learning courses with non broker involvement

• Brand Brokers– An independent broker partners with famous

name-brand educational institutions to compete based upon a recognizable credible promise

Source: Standing Stones Consulting, Business Models for Distributed Learning: 2000

E-Learning Business Models

• Mall / Aggregators Brokers– Individual institutions register their offerings in an

online “yellow pages” of e-learning courses

• Regional Consortia– A group of learning institutions, typically regionally

based, collaborate to provide learners with better learning and to share costs and services

• Channel Suppliers– Individual institutions take advantage of an existing

Web marketing channel to offer courses to a well-defined market segment

Source: Standing Stones Consulting, Business Models for Distributed Learning: 2000

Current Positioning

• VTalumNet – Selling Direct– Lifelong Learning

• Market Courses to VT Alumni• Portion of Courses Co-Branded with MindLeaders • Same Infrastructure as VTOnline

• VTOnline – Selling Direct– Non-Credit

• Currently Marketed through Mass Media• Toeholds: Sealants, Diseases, & Architecture• Portion of Courses Co-Branded with MindLeaders

Initial Market Recommendations

• We cannot be everything to everybody!• Capitalize on “low-hanging” fruit

– Maximize revenue from existing courses that are target marketable

• Align with strong industry partners, initiatives, brands, or faculty members

• Enable existing programs to become stronger players in their vertical markets*

• Partner with World-Class brands*– Nothing less than the best

• Invigorate team with Entrepreneurial spirit

Potential Market Opportunities

• Prospective and Current Students– Facilitate the Skill Development of Students

Interested in Attending, Currently Attending, or Recently Graduated

• Virginia Tech Faculty – Enable VT Faculty Members to Expand Scope of

Grant and Research Opportunities and Resources

• Enterprise Fund– Create Awareness and Clarity Regarding Value

Proposition to Faculty Members and IDDL

Potential Market Opportunities

• Masters in Information Technology– Chunk Static Content and Target Market

• Virginia Tech Centers and Institutes– Value-Added Partner– Align with Strong Markets with Need of

Knowledge Transfer between Academia and Industry Partners

– Enable an External Consortium –VBI Example

• Small Business Learning Network– Build Regional Constituency– Co-Brand: Leadership and Ethics??

Proposed Strategic Plan Process

• Market Research and Analysis• SWOT and Situational Analysis• Build “Sunflower” Model• Program / Initiative Identification, Design,

and Development• Identify Key Stakeholders and Partners

– Turn into Program / Initiative Champions– Collaborate on Strategic Plan development

• Focus and Execute• Process / Order Critical: Ready, Aim, Fire

Next Step…

SWOT Data CollectionSWOT Data Collection

• C. Lattimer will email everybody on initial C. Lattimer will email everybody on initial SWOT thoughtsSWOT thoughts

• Add, Subtract, or Change given your Add, Subtract, or Change given your opinions and experiencesopinions and experiences

• Anonymous InputAnonymous Input– Email – clattimer@vt.edu Email – clattimer@vt.edu – Deliver Envelop to Dot Eaton addressed to “C. Deliver Envelop to Dot Eaton addressed to “C.

Lattimer”Lattimer”

• Aggregate findings will be assessed and Aggregate findings will be assessed and presented to department next weekpresented to department next week

Questions or Suggestions?Questions or Suggestions?

Send Comments to: Send Comments to:

Charles LattimerCharles Lattimer

clattimer@vt.educlattimer@vt.edu